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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5096 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5096

To require the Secretary of the Treasury to instruct the United States 
  Executive Directors at the international financial institutions to 
     advocate opposition to projects that make use of forced labor.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 18, 2024

Mr. Rubio (for himself and Mr. Merkley) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
To require the Secretary of the Treasury to instruct the United States 
  Executive Directors at the international financial institutions to 
     advocate opposition to projects that make use of forced labor.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Funds for Forced Labor Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The International Labour Organization has expressed 
        ``deep concern'' about the ``extensive use of forced labor in 
        the Xinjiang Uyghur Autonomous Region''.
            (2) In its 2022 annual report, the Congressional-Executive 
        Commission on China found, ``Authorities in the XUAR (Xinjiang 
        Uyghur Autonomous Region) maintained a system of forced labor 
        that involved former mass internment camp detainees and other 
        Turkic and Muslim individuals.''.
            (3) In 2022, the Atlantic Council published a report 
        detailing that the World Bank's private lending body, the 
        International Finance Corporation, determined that several 
        clients of the Corporation were active participants in the 
        People's Republic of China campaign against the Uyghur people 
        and Uyghur culture in the Xinjiang Uyghur Autonomous Region.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) international financial institutions should not fund, 
        finance, or provide loan guarantees to any entity that has been 
        credibly accused of using forced labor; and
            (2) the United States should work with allies, partners, 
        and all countries around the globe to eliminate forced labor 
        and ensure that international financial institutions do not 
        fund projects that use forced labor.

SEC. 4. UNITED STATES OPPOSITION TO INTERNATIONAL FINANCIAL INSTITUTION 
              LOANS FOR PROJECTS THAT WOULD USE, OR HAVE A SIGNIFICANT 
              RISK OF USING, FORCED LABOR.

    (a) In General.--Title VII of the International Financial 
Institutions Act (22 U.S.C. 262d, 262c note, 262e, and 262d note) is 
amended by adding at the end the following:

``SEC. 706. UNITED STATES OPPOSITION TO LOANS FOR PROJECTS THAT WOULD 
              USE, OR HAVE A SIGNIFICANT RISK OF USING, FORCED LABOR.

    ``(a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at each international financial 
institution (as defined in section 1701(c)(2)) to use the voice, vote, 
and influence of the United States, to the maximum extent practicable, 
to--
            ``(1) oppose the provision of a loan to any project that 
        will--
                    ``(A) pose a significant risk of using forced 
                labor; or
                    ``(B) be carried out by a state-owned or heavily 
                state-influenced entity in the Xinjiang Uyghur 
                Autonomous Region of the People's Republic of China; 
                and
            ``(2) require the institution to provide, with respect to 
        each project supported by the institution, an explanation, 
        specific to the project, of--
                    ``(A) how the institution has vetted the project 
                for forced labor risks; and
                    ``(B) the actions taken to mitigate, track, and 
                reverse that risk.
    ``(b) Definition of Forced Labor.--In this section, the term 
`forced labor'--
            ``(1) has the meaning given the term in section 307 of the 
        Tariff Act of 1930 (19 U.S.C. 1307); and
            ``(2) includes convict labor and indentured labor under 
        penal sanctions.''.
    (b) Report.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter for the next 
        5 years, the Secretary of the Treasury shall submit to the 
        committees specified in paragraph (2) a written report on the 
        implementation of the amendment made by subsection (a), which 
        shall include details about--
                    (A) any project approved by an international 
                financial institution (as defined in section 1701(c)(2) 
                of the International Financial Institutions Act (22 
                U.S.C. 262r(c)(2)) in which forced labor could possibly 
                be used; and
                    (B) the efforts of the United States Executive 
                Director at each such institution to convince other 
                countries to oppose any project in which forced labor 
                could be used.
            (2) Committees specified.--The committees specified in this 
        paragraph are--
                    (A) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (3) Public availability.--The Secretary of the Treasury 
        shall make the report (or an unclassified version of the 
        report) available to the public.
                                 <all>
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